Of the entire investment of USD 400 million (around Rs 2,640 crore), the company has invested USD 320 million initially for its first phase, which will have a production capacity of 20,000 two-wheeler tyres and 40,000 tubes a day, according to company spokesperson Jia-Ciao Liou.

The company plans to increase its capacity to manufacture 60,000 two-wheeler and 12,000 four-wheeler tyres under the second and third phases, according to Liou.

"India is an exciting market. If the market allows us, we have vigorous and ambitious plans in India. Our target is to complete all investments at the Sanand plant by 2021," Liou said, adding, Maxxis India is targeting to capture 15 per cent of the countrys two-wheeler market in the coming five years.

The company currently serves as an OEM (original equipment manufacturer) tyre supplier to Honda, Maruti Suzuki, Mahindra, Tata and Jeep.

The India production will at present meet the demands of the domestic market for which the company has so far been importing from Thailand.

However, Liou said the company plans to eventually explore exporting from India.

"We have a presence in 180 countries. Over the years we will shift our Taiwan production to India and will explore the possibility to export the products from here," he said.

Liou said that considering the quality and other concerns, 98 per cent of raw materials will be imported from south east and east Asian markets. "We will gradually localise supply from India," he added.

The company had signed a memorandum of understanding (MoU) at the Vibrant Gujarat Investors Summit in 2015.

"Prime Minister Narendra Modi was promoting Make In India and suggested us to come and set up a plant in Gujarat. He assured us full support from the state government and things progressed very fast as we were able to set up the plant within one year," Liou said.

Meanwhile, Rupani said that Gujarat now accounts for 15 per cent of total foreign investment in the automobile sector, and the Maxxis decision to set up a plant in Gujarat will strengthen India-Taiwan tie and create job opportunity for the locals with over 2,000 people getting employment here.